HDR shot to SDR - how to make it quick and keep quality?

I took shots with my iPhone 13 Pro Max and was expecting FCP to set correctly. Now I’m being prompted that I am adding a HDR fshot to a SDR project, and fix recommended gives me results which are not to the quality of the shots from the iPhone.

Tried to change project settings to “HDR to Rec. 709 SDC” but quality is not as original.

just can’t believe FCP cannot automatically find correct settings of imported media and set accordingly ?

i’ve done dozens of projects with FCP and never had to struggle like this.

what have I missed when setting the project ??